Asked by
Daniela Marie Barlan
on Nov 14, 2024
Verified
If the equity method is being used, cash dividends received
A) are credited to the Dividend Income account.
B) do not require an entry because the investee's net income have already been recorded at the proper proportion on the investor's books.
C) are credited to the Investment in Associates account.
D) are credited to the Income from Associates account.
Equity Method
An accounting technique used by a company to record the profits earned through its investment in another company.
Cash Dividends
Payments made by a corporation to its shareholders, usually as a distribution of profits.
- Learn the approach to dividends and the effect of net income or loss from investees under the equity method paradigm.
Verified Answer
KM
Learning Objectives
- Learn the approach to dividends and the effect of net income or loss from investees under the equity method paradigm.
Related questions
If the Equity Method Is Being Used, the Income from ...
The Investment Account Is Decreased by the Dividends Received by ...
Wendell Company Owns 28% of the Common Stock of Porter ...
The Method of Accounting for Investments in Equity Securities in ...
Photo Finish Corporation Bought a 40% Interest in Click-It Corporation's ...